Tag Archives: service contract

Ever wonder what happens when you buy a warranty or service contract from a car dealer? Unfortunately, some dealers just pocket the money. Then if your car needs repairs, you are left with no coverage. Some dealers have faced criminal penalties for engaging in this scam, but often it goes undetected.

A lawsuit filed on behalf of consumers in New Jersey alleges that a dealer in that state repeatedly sold so-called “warranties” or service contracts on expensive used cars, but failed to activate the policies.